1, economic risk
Economic risk refers to the adverse impact on economic activities caused by the economic situation, economic strength and economic development trend of the country where the project is located. For example:
(1) inflation. If there is serious inflation in the country where the project is located, the local wages and prices will rise sharply beyond the contract expectations, while the currency will depreciate rapidly beyond the contract expectations, which will directly and seriously damage the economic interests of all parties involved in the project.
(2) Foreign exchange risk. Foreign exchange risks include changes in the foreign exchange policy of the country where the project is located, exchange rate fluctuations, foreign exchange control, depreciation of foreign exchange selected in the contract, insufficient foreign exchange ratio determined in the contract, inability to enjoy foreign currency payment on time, and poor interest rate, which cause damage to the project party.
(3) Economic crisis. The economic crisis has caused economic depression and may even lead to the interruption of the project. It will inevitably cause huge losses to all parties involved in the project.
2. Contract risk
Contract is the code of conduct to safeguard the interests of the parties, and it is also the code that must be followed in project bidding. Therefore, the problems existing in the contract will have a direct and significant impact on the parties. Including:
(1) Contract defects. Errors, contradictions, omissions, unfinished matters, ambiguities and other issues in the contract documents will lead to the loss of the economic interests of the parties.
(2) The contract conditions are unfair. The terms of the contract do not conform to international practice, especially the terms of liability, engineering change, price adjustment, quality, acceptance, force majeure and claim. Risk sharing is obviously unreasonable, and the technical specifications are too harsh, which will cause greater risks to the contractor.
(3) Contract translation. When contract documents are translated into different languages, their meanings will be different, and even translation errors will cause contract risks.
3. Technical Risk Technical risk usually refers to the risk in the process of engineering construction.
Mainly includes the following aspects:
(1) Abnormal geological, foundation, hydrological and climatic conditions. These conditions are inconsistent with the information provided by the owner and its estimation, and there is a big deviation.
(2) Supply risks of materials and equipment. Mainly the quality of materials and equipment does not meet the requirements or the supply is not timely, which will cause losses to the contractor.
(3) Risk of engineering change. The engineering change proposed by the owner, whether it is design change or engineering quantity change, will disrupt the contract and the established construction plan and arrangement, cause new problems and difficulties for the construction organization, and easily cause losses if it is not handled properly.
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